GRAND CAYMAN – With the strengthening of the Cayman Islands economy, JN Money Services Limited (JNMS), which operates the distinct JN Money Transfer and QuikCash Money Transfer remittance brands, says the outlook for remittances is now positive.
General Manager, Leesa Kow, notes that while outbound remittances from Cayman contracted over the global recessionary period, there are signs of improvement.
She noted that the Cayman economy experienced marginal growth in 2011, with some forecasters predicting “a mild 1.5 percent increase in gross domestic product (GDP) in 2012,” quoting data published in the Business Monitor International. The Cayman Government anticipates a 2.3 percent GDP recovery this year, Premier McKeeva Bush announced in his budget presentation.
Premier McKeeva Bush
The Government’s expectation is based on private investment activity over the next three years, particularly in the construction sector, according to news reports. Several projects are to be pursued, which include the development of a medical tourism hospital; and infrastructural projects to be undertaken by the leisure airline and distributions group, the Dart Group in the tourism sector; the construction of a cruise ship berthing facility and the development of a special economic zone.
Some of these projects are expected to be launched in 2012, and could stimulate employment and demand in other sectors.
“The tourism industry has also experienced some improved activity as airline arrivals have increased,” Miss Kow observed.
Both the tourism and construction sectors employ a significant number of migrant labourers, she underscored. They were deeply affected by the fallout in the Cayman economy resulting from the global economic challenges over the past four years. This has had a direct impact on the outflow of remittances from the British Overseas Territory.
Meanwhile, some business owners, although not as positive about economic growth this year, are upbeat about their own growth in 2012. According to a Mood of the Boardroom online survey among business leaders in Cayman, 60 percent of business operators are somewhat or very confident that their operations will grow. This is ten percent more entrepreneurs than last year. “This confidence could have a positive impact on the job market,” Miss Kow says. “And, given the positive global financial indicators, there is also good reason for us to remain optimistic,” the General Manager affirmed.
Leesa Kow, General Manager, JN Money Services Limited
Miss Kow’s optimism is based on World Bank data, which shows that remittances to developing countries are expected to grow at lower, but at more sustainable rates of seven to eight percent through 2011 to 2013, with inflows projected to reach US$375 billion by 2012 and US$404 billion by 2013.
And while conversely, reports in the Cayman press indicate that outbound remittances from foreign workers have declined steadily since 2008, the JNMS General Manager says this could improve. The Cayman Islands Monetary Authority stated that remittances of approximately $184.76 million transmitted by foreign workers in 2010 would have decreased by four to five percent in 2011.
“We are hopeful that the economic situation in Cayman will improve, as we refine our operations to facilitate money transfers globally,” Ms. Kow said, pointing out that JNMS would implement a suite of initiatives in 2012 to improve its competitiveness in the global market. The company has more than 300 JN Money Transfer branches and Agents across, the United States of America, Canada, the United Kingdom, the Caribbean and Ghana.
